Glossary · Business metrics
ARPU
Average revenue per user over a period.
What is ARPU?
ARPU (average revenue per user) is total revenue divided by the number of active users in a period. It normalizes revenue across a growing or shrinking user base.
Comparing ARPU under an ad model versus a subscription is a direct way to see which monetization strategy earns more per user for your app.
ARPU in context
To understand ARPU fully, it helps to know the concepts around it. Customer Lifetime Value (LTV), the total revenue expected from a user over their entire relationship with the app. Monthly Active Users (MAU), the number of unique users who engage with an app in a month. Conversion Rate, the share of users who take a desired action, such as upgrading to paid. eCPM, effective cost per mille — estimated revenue per 1,000 ad impressions.
Together these describe how business metrics works in practice for an AI app, and where ARPU fits among them.
Frequently asked questions
Start monetizing in about 5 minutes
Wrap your existing LLM response stream with the Monetzly SDK and earn on every session, no paywall required.